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Is Vacation Rental Accommodation A Good Investment? |
By:
Chris Luck |
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Is Vacation Rental Accommodation A Good Investment?
Chris Luck
Buyers of holiday villas hope to fund the cost of the purchase of their property out of the rent received from renting, but is this dream feasible?
Properly managed property in a popular area, especially if it attracts bookings throughout the year, should be self-financing. However, ?properly managed? does not necessarily mean that you should trust a rentals agency to handle bookings and generally manage your holiday accommodation. Indeed, the recent experience of many villa owners in Spain suggests that you should be very wary of using an agency and you would be better advised to handle everything yourself.
Alarming reports in the papers about agents omitting to tell owners when their properties have been let and pocketing the money suggest that, unless you have some way of keeping tabs on agents, it would be advisable to take time to manage bookings yourself.
There is a way around the problem. The internet offers many sites where you can advertise your apartment or villa and most provide an availability calendar and a booking form. By advertising on-line you can take control of bookings and handle your business yourself, saving the 20% of rental income charged by most rental agencies along the way. All it takes is a little time and effort.
Of course you have to make yourself available to respond to bookings and enquiries. It is acceptable to use a telephone answering machine and email, but make sure you respond quickly; certainly the same day. It will also help if you keep your availability calendar up to date. It's a chore, but if you don't do this you will receive bookings and enquiries for periods when the accommodation is already booked, wasting your time and the potential customer.
Another vital task is to ensure the villa is cleaned between bookings. Fortunately there are many small companies or individuals who will provide this service, and some will also meet your tenants to hand over the keys to the villa.
Despite the drawbacks, some villa owners will not be able to spare the time to manage their business and will be forced to use an agency. The challenge then is to find a good one. Ask for recommendations from other clients and make sure you check them. Scrutinize the rental agreement carefully to ensure it is clear what the agents are required to do.
To prevent your villa being occupied without your knowledge consider paying the utility bills yourself, if possible with a monthly statement. If meter readings show electricity has been consumed then the property must have been occupied and you will be owed rent. Usually the knowledge that you are able to check on this will be a suitable deterrent.
In conclusion, buy wisely, set aside sufficient of your time to handle the bookings, and don't penny-pinch on the advertising, and your rental business should flourish.
Self catering accommodation lettings can be a profitable business if you purchase a http://www.holidayhomefinders.co.uk/) holiday villa or apartment in the right area. Avoid expensive agent's fees by managing the villa yourself and http://www.holidayhomefinders.co.uk/advertise.html advertise your holiday accommodation on our website.
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Article Source: http://www.PopularArticles.com/article151457.html |
Article: Is Vacation Rental Accommodation A Good Investment?
Author: Chris Luck
Total Views: 53
Word Count: 525
Category:
Home /
Finance / Investing
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